-In the above figure, suppose the economy is initially on LD₀and LS₀. According to the classical growth theory, an advance in technology would initially

Name: -In the above figure, suppose the economy is initially on LD 0 and LS 0 . According to the classical growth theory, an advance in technology would initially
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According to classical growth theory, an advance in technology increases productivity, leading to a higher demand for labor, which initially increases the real wage rate.

-In the Above Figure, Suppose the Economy Is Initially on LD0

-In the Above Figure, Suppose the Economy Is Initially on LD₀